Dividend payment Karima Sameer wishes to purchase shares of Countdown Computing, Inc The company 's board of directors has declared a cash dividend of US$0 80 to be paid to holders of record on Wednesday, May 12 a What is the last day that Karima can purchase the stock (trade date) and still receiv...

a Friday May 7 b Monday May 10 c The price of the stock should drop by the amount of the dividend ...

Dividend payment Karima Sameer wishes to purchase shares of Countdown Computing, Inc. The company's board of directors

Question:

payment Karima Sameer wishes to purchase shares of Countdown Computing, Inc. The company's board of directors has declared a cash of US$0.80 to be paid to holders of record on Wednesday, May 12.
a. What is the last day that Karima can purchase the stock (trade date) and still receive the
b. What day does this stock begin trading 'ex
c. What change, if any, would you expect in the price per share when the stock be gins trading on the ex day?
d. If Karima held the stock for less than one quarter and then sold it for US$39 per share, would she achieve a higher investment return by (1) buying the stock prior to the ex date at US$35 per share and collecting the US$0.80 or (2) buying it on the ex date at US$34.20 per share but not receiving the Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...